Banco BBVA Argentina S.A. announces Fourth Quarter and Fiscal Year 2023 results

Rhea-AI Summary

BBVA Argentina announced its 4Q23 results with an inflation-adjusted net income of $48.6 billion, showing a significant increase from the previous quarter. The Bank's operating income also saw a substantial rise in 4Q23. However, total consolidated financing and deposits experienced declines during the quarter. The non-performing loan ratio improved, while the efficiency ratio showed positive trends. BBVA Argentina's regulatory capital ratio and Tier I ratio remained strong.

Financial Analyst

BBVA Argentina's announcement of a 220.8% increase in inflation-adjusted net income for the fourth quarter of 2023 compared to the previous quarter demonstrates a significant quarterly growth, yet an 8.7% decrease year-over-year. This indicates a volatile performance which could be attributed to the economic environment or operational factors within the bank. The substantial growth in operating income, at 86.4% higher than the same quarter of the previous year, suggests increased operational efficiency or higher revenue-generating activities. However, the decline in financing to the private sector could be a concern as it may reflect a contraction in the bank's core business of lending.

The bank's regulatory capital ratio of 32.8% is well above the minimum requirement, indicating a strong capital position that could provide resilience against financial shocks. However, investors should consider the high efficiency ratio, despite its improvement, as it may imply higher costs relative to income compared to peers. The non-performing loan ratio, coupled with a coverage ratio of 165.30%, suggests that the bank has a handle on credit risk, which is a positive sign for credit quality.

Economist

BBVA Argentina's results, especially the significant quarterly increase in net income and the high operating income, must be analyzed within the context of Argentina's inflationary environment. The bank's decision to report inflation-adjusted results pursuant to IAS 29 is crucial for providing a more accurate financial picture. The decrease in total consolidated financing to the private sector and in deposits in real terms suggests a possible tightening of credit conditions or reduced demand for loans, which could be indicative of broader economic challenges. Such trends can have implications for the country's economic growth and credit expansion, potentially affecting consumer spending and business investment.

Market Research Analyst

The reported figures show BBVA Argentina's fluctuating market share in private sector loans and deposits. A decrease in market share could imply increased competition or a strategic shift in the bank's operations. The bank's liquid assets being at 91.2% of total deposits is a strong indicator of liquidity, which is essential for meeting short-term obligations and maintaining customer confidence. However, the contraction in key areas like credit cards, consumer loans and other loans could signal a shift in consumer behavior or risk appetite, which may affect future revenue streams and market positioning.

BUENOS AIRES, Argentina, March 5, 2024 /PRNewswire/ -- Banco BBVA Argentina S.A (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) ("BBVA Argentina" or "BBVA" or "the Bank") announced today its consolidated results for the fourth quarter (4Q23), ended on December 31, 2023.

As of January 1, 2020, the Bank started to inform its inflation adjusted results pursuant to IAS 29 reporting. To facilitate comparison, figures of comparable quarters of 2022 and 2023 have been updated according to IAS 29 reporting to reflect the accumulated effect of inflation adjustment for each period up to December 31, 2023.

4Q23 & 2023 Highlights

• BBVA Argentina's inflation adjusted net income in 4Q23 was $48.6 billion, 220.8% higher than the $15.2 billion reported on the third quarter of 2023 (3Q23), and 8.7% lower than the $53.2 billion reported on the fourth quarter of 2022 (4Q22). BBVA Argentina's inflation adjusted net income for the twelve months of 2023 totaled $164.9 billion, 8.6% lower than the $180.4 billion reported in the twelve months of 2022.
  
  
• In 4Q23, BBVA Argentina posted an inflation adjusted average return on assets (ROAA) of 3.2% and an inflation adjusted average return on equity (ROAE) of 15.3%. In 2023, BBVA Argentina posted an inflation adjusted ROAA of 2.7% and an inflation adjusted ROAE of 13.0%.
  
  
• Operating income in 4Q23 was $477.9 billion, 86.4% higher than the $256.5 billion recorded in 3Q23 and 148.8% over the $192.1 billion recorded in 4Q22. In 2023, the accumulated operating income was $1.19 trillion, 86.4% above the $641.0 billion recorded in the same period of 2022.
  
  
• In terms of activity, total consolidated financing to the private sector in 4Q23 totaled $2.0 trillion, falling 5.7% in real terms compared to 3Q23, and contracting 12.3% compared to 4Q22. In the quarter, the variation was mainly driven by a decline in credit cards by 7.6%, in consumer loans by 21.5% and in other loans by 15.4%. This was offset by an increase in prefinancing and financing of exports by 54.7%. BBVA's consolidated market share of private sector loans reached 9.85% as of 4Q23.
  
  
• Total consolidated deposits in 4Q23 totaled $3.6 trillion, decreasing 8.5% in real terms during the quarter, and 11.0% YoY. Quarterly decrease was mainly explained by a fall in time deposits and investment accounts, by 40.9% and 37.1% respectively. The Bank's consolidated market share of private deposits reached 6.79% as of 4Q23.
  
  
• As of 4Q23, the non-performing loan ratio (NPL) reached 1.29%, with a 165.30% coverage ratio.
  
  
• The accumulated efficiency ratio in 4Q23 was 58.6%, improving compared to 3Q23's 63.8%, and to 4Q22's 63.9%.
  
  
• As of 4Q23, BBVA Argentina reached a regulatory capital ratio of 32.8%, entailing a $944.4 billion or 280.5% excess over minimum regulatory requirement. Tier I ratio was 32.8%.
  
  
• Total liquid assets represented 91.2% of the Bank's total deposits as of 4Q23.

4Q23 Conference Call   
Wednesday, March 6 - 12:00 p.m. Buenos Aires time (10:00 a.m. EST)   
To participate please dial-in:   
+ 54-11-3984-5677 (Argentina)   
+ 1-844-450-3851 (United States)   
+ 1-412-317-6373 (International)   
Web Phone: click here   
Código de la conferencia: BBVA   
Webcast & Replay: click here

To access the full report  English version - Spanish version   
To access webcast presentation click here

About BBVA Argentina

BBVA Argentina (NYSE; BYMA; MAE: BBAR; LATIBEX: XBBAR) is a subsidiary of the BBVA Group, the main shareholder since 1996. In Argentina, it is one of the leading private financial institutions since 1886. Nationwide, BBVA Argentina offers retail and corporate banking to a broad customer base, including: individuals, SME's, and large-sized companies.

BBVA Argentina's purpose is to bring the age of opportunities to everyone, based on our customers' real needs, providing the best solutions, and helping them make the best financial decisions through an easy and convenient experience. The institution relies on solid values: "The customer comes first, We think big and We are one team". At the same time, its responsible banking model aspires to achieve a more inclusive and sustainable society.

Investor Relations Contact

Carmen Morillo Arroyo 
Chief Financial Officer 
Inés Lanusse  
Investor Relations Officer 
Belén Fourcade
Investor Relations

investorelations-arg@bbva.com  
ir.bbva.com.ar

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SOURCE Banco BBVA Argentina S.A.

FAQ

What was BBVA Argentina's inflation-adjusted net income in 4Q23?

BBVA Argentina's inflation-adjusted net income in 4Q23 was $48.6 billion.

What were BBVA Argentina's inflation-adjusted ROAA and ROAE in 4Q23?

BBVA Argentina's inflation-adjusted ROAA in 4Q23 was 3.2%, and the ROAE was 15.3%.

What was the Bank's operating income in 4Q23?

The Bank's operating income in 4Q23 was $477.9 billion.

What was the total consolidated financing to the private sector in 4Q23?

Total consolidated financing to the private sector in 4Q23 totaled $2.0 trillion.

What was the non-performing loan ratio in 4Q23?

The non-performing loan ratio (NPL) in 4Q23 reached 1.29%.